Understanding Chapter 13 Bankruptcy and How it can Help You

Before you file for bankruptcy to take care of the excess debts that surround you, it is important to understand the different options that are available to you. Chapter 13 bankruptcy in Colorado may be an option for you if you need help paying off your debts but do not qualify for Chapter 7 bankruptcy. In Chapter 13 bankruptcy in Colorado you will be given the option to provide a plan to the creditors to pay back the debt over either 3 or 5 years while the creditor promises to stop all collection efforts.

How it Works

There are several steps that must be followed in order to file Chapter 13 bankruptcy; you will need to start out by filing a bankruptcy in court that serves your area. Along with this petition you will need to file a financial affairs statement, schedules of leases and other contracts, proof of current expenditures and income, and all assets and liabilities under your name. Under chapter 13 bankruptcy you will also be required to determine a plan of debt repayment that was made in credit counseling. It is important to provide all required documents in order to assist the bankruptcy claim process.

Eligibility Requirements

There are several eligibility requirements that must be met in order to file chapter 13 bankruptcy Colorado area. There are certain requirements of debts that are both unsecured and secured and you must fall below these requirements in order to follow; if you meet them you are welcome to file bankruptcy with the help of an attorney. It is also important to note that you will not be able to file this type of bankruptcy if your bankruptcy petition was declined in the past 180 days due to your failure to comply with court appearances and other requirements.

Advantages of Filing Chapter 13

There are several advantages for choosing Chapter 13 bankruptcy in Colorado including an opportunity of saving your home from possible foreclosure as long as payments are made on time during this plan. You will also be allowed to reschedule all secured debts and be provided with an extension under this plan, which will allow payments to be lowered. Provisions in filing this type of bankruptcy allow for protection.

Making it Work

It is up to debtor to make this type of bankruptcy work; it is not enough to promise to pay back the debts in a timely matter, you must also keep up on your end of the bargain. By filing this form of bankruptcy you are given a second chance to repay your debts in a timely matter while receiving relief from creditors and debt collectors.

If you would like to know more about chapter 13 bankruptcy in Colorado, contact the Law Offices of Christopher A. German, LLC. They can be reached at 303-617-8447.